Sign up now for FREE unlimited access to Reuters.com Register

US retail sales flat in July. increase in core sales Retailer Target’s quarterly earnings decline Indexes down: Dow 0.57%, S&P 0.79%, Nasdaq 1.17%

Wall Street’s main indexes fell on Wednesday with growth stocks under fresh pressure as bond yields rose minutes before the Federal Reserve’s July meeting, while weak results from Target dragged the retail sector lower. Retail earnings have been mixed so far this week, with Target Corp ( TGT.N ) down 2 percent after reporting a 90 percent drop in quarterly profit as its inflation-hit customers cut spending on discretionary goods. read more The S&P 500’s ( .SPXRT ) retail sector fell 1.2 percent, after jumping 1.9 percent in the previous session, boosted by quarterly earnings from Walmart Inc ( WMT.N ) and Home Depot Inc ( HD.N ). Sign up now for FREE unlimited access to Reuters.com Register Data showed U.S. retail sales were flat in July as falling gasoline prices weighed on receipts at gas stations. However, consumer spending appeared to be holding up, which could further calm fears that the economy is already in recession. read more “We need to see a real reduction in inflation,” said Brian Overby, senior purchasing strategist at Ally. “The retail market space, since earnings came out this week, is not confirming that inflation has peaked.” Nine of the S&P 500’s 11 major sectors were down in early trade, with shares in communications services (.SPLRCL) and consumer discretionary (.SPLRCD) leading losses. At 09:51 am ET, the Dow Jones Industrial Average (.DJI) was down 194.64 points, or 0.57%, at 33,957.37, the S&P 500 (.SPX) was down 34.07 points, or 0.79%, at 4,271 Nad . The Composite (.IXIC) was down 152.85 points, or 1.17%, at 12,949.70. The focus was on the release of minutes from the Federal Reserve’s July meeting, which could provide clues on the size of further rate hikes after policymakers were adamant they would keep raising rates until inflation under control. read more Traders see almost equal odds for a 50 basis point and 75 basis point hike from the Fed in September. FEDWATCH The benchmark S&P 500 has recovered nearly 17% from its mid-June lows, with the latest boost coming from expectations that inflation has peaked after softer-than-expected data earlier this month. Stronger-than-expected corporate earnings also helped U.S. stocks rally this quarter, but some investors point to potential risks to earnings that could dampen momentum. read more Home improvement chain Lowe’s Cos Inc ( LOW.N ) rose 1.2 percent on a better-than-expected quarterly profit. read more Declining issues outnumbered advancing ones by a ratio of 6.27 to 1 on the NYSE and 3.91 to 1 on the Nasdaq. The S&P posted two new 52-week highs and 29 new lows, while the Nasdaq posted 13 new highs and 18 new lows. Sign up now for FREE unlimited access to Reuters.com Register Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru. Edited by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles.